VSNL nets 190 'early birds' with VRS bait

Rajeshwari Adappa Thakur, TNNMay 28, 2003, 04.16am IST

MUMBAI: VSNL has received about 190 applications for its voluntary retirement scheme (VRS). The 'early bird' scheme, which offers more generous incentives, is valid till the month-end. The VRS scheme ends on July 14.

The response is much better than an earlier VRS floated before the disinvestment when little over 100 applications were received. As an incentive, the early bird scheme offers roughly one month's extra pay, over and above the sum that an employee is eligible for.

At present, most of the applications are from the officer grade employees. The non-officer grade employees have not participated in the VRS due to the union's objections.

Going by the current numbers, it is likely that the target of about 500-700 employees may be met. VSNL has over 2,700 employees. A section of employees are upset with the Tatas and claim that the latter have violated their promise of offering job guarantees for two years. Employees say that the VRS has been introduced before the end of two years.

They claim that morale is low. They are worried if they do not accept the VRS, next year, when the guarantee ends, they could be asked to leave on less generous terms.

Also, they are upset with the terms of the scheme and feel that the compensation offered is quite low.

Besides, they claim that the Tatas are bringing in their own people at crucial posts. However, sources close to the company denied these allegations and said that the VSNL VRS is better than that offered by most PSUs.

Meanwhile, the VSNL share today touched a high of Rs 89.30, before closing at Rs 85.45, lower than yesterday's close of Rs 87.75 on the BSE.

The VRS offered by the management prior to disinvestment had met with a poor response from employees. About 114 applications were received at the close of the scheme. Most of the applicants were middle and lower level employees who were nearing their retirement age.